Rama Telecom Limited, a technology-driven engineering company specialising in optical fibre-based networking infrastructure, has successfully closed its Initial Public Offering (IPO) on June 27, 2025. The company attracted significant investor interest, recording a subscription of 1.12 times on the final day of the offer period.

With a Grey Market Premium (GMP) of ₹6, Rama Telecom is expected to list at around ₹74 per share—reflecting a potential listing gain of 8.82%.

About Rama Telecom Limited

Rama Telecom offers end-to-end customised telecom networking solutions built using advanced technology and sustainable methods. Its core strength lies in creating a robust and seamless digital connectivity infrastructure across India using optical fibre-based systems.

The company plays a critical role in India’s telecom ecosystem, enabling faster and more reliable digital transformation initiatives.

IPO Details at a Glance

• IPO Opened On: June 25, 2025

• IPO Closed On: June 27, 2025

• Issue Size: ₹25.13 Crores (Entirely Fresh Issue)

• Equity Shares Offered: 36.96 Lakh

• Price Band: ₹65 to ₹68 per equity share

• Market Capitalisation at ₹68: ₹89.75 Crores

• Lot Size: 2,000 Shares

• Minimum Investment (Retail): ₹1,36,000

• Minimum Investment (HNI – 2 lots): ₹2,72,000

• Listing Exchange: NSE SME

• Allotment Date (Tentative): June 30, 2025

• Listing Date (Tentative): July 02, 2025

Key Issue Stakeholders

• Book Running Lead Manager: Affinity Global Capital Market Private Limited

• Registrar: Cameo Corporate Services Limited

• Market Maker: Asnani Stock Broker Private Limited

These entities are responsible for managing the IPO process and ensuring a smooth transition from offer to listing.

GMP and Subscription Status

As of 11:00 AM on June 27, 2025, the IPO has seen an overall subscription of 1.12 times, which indicates moderate investor interest. The GMP of ₹6 reflects a potential listing price of ₹74, pointing toward a near 9% premium over the upper band.

Although the Grey Market Premium is not regulated, it serves as a sentiment indicator and shows positive early demand for Rama Telecom’s stock.

Day-wise GMP Trend

• GMP on June 24, 2025: ₹6

• Expected Listing Price: ₹74

• GMP Percentage Gain: 8.82%

The GMP has remained stable, hinting that investors are confident in the company’s fundamentals and growth potential.

Financial Performance Snapshot

Rama Telecom has posted consistent financial growth across the last three financial years:

Revenue from Operations (₹ in Lakhs):

• FY2023: ₹3,322.46

• FY2024: ₹3,747.87

• FY2025: ₹4,247.32

EBITDA (₹ in Lakhs):

• FY2023: ₹189.61

• FY2024: ₹432.11

• FY2025: ₹810.13

Profit After Tax (₹ in Lakhs):

• FY2023: ₹108.34

• FY2024: ₹261.16

• FY2025: ₹552.93

These numbers show that Rama Telecom is growing at a healthy pace, especially in terms of EBITDA margin expansion and profitability.

Key Valuation Metrics and Ratios

• Pre-Issue EPS (FY24): ₹5.85

• Post-Issue EPS (FY24): ₹4.19

• Pre-Issue P/E Ratio: 11.62x

• Post-Issue P/E Ratio: 16.23x

• Industry Average P/E: 35x

Return Metrics (FY24):

• ROCE: 37.06%

• ROE: 10.63%

• RoNW: 33.58%

The post-issue P/E is significantly lower than the industry benchmark, indicating the IPO is fairly priced. Moreover, ROCE and RoNW are robust, suggesting efficient use of capital and strong net worth generation.

IPO Allotment Guide

Investors can check the Rama Telecom IPO Allotment Status on June 30, 2025, using the steps below:

1. Visit the Cameo Corporate Services IPO Allotment Portal

2. Select “Rama Telecom Limited IPO” from the dropdown

3. Enter your Application Number, PAN, or DP Client ID

4. Click on "Submit" to get your allotment status

The allotment details will help you know whether shares have been allotted and how to proceed with demat credit or refund.

IPO Objectives and Utilisation of Funds

The proceeds from the IPO will be deployed for:

• Strengthening the existing telecom infrastructure

• Investing in new technology and customised networking solutions

• Working capital augmentation to support expanding operations

• General corporate purposes and operational scaling

This capital infusion will empower Rama Telecom to scale operations and further establish itself as a reliable technology enabler in India's telecom space.

Should You Invest in Rama Telecom IPO?

✅ Reasons to Apply:

• Consistent revenue and profitability growth

• Moderate IPO valuation vs industry peers

• Positive GMP indicating potential listing gain

• Strong ROCE and operating efficiency

⚠️ Risks to Consider:

• Small-cap SME IPO with high retail ticket size

• Dependence on telecom sector performance

• Limited past public market experience

Recommendation: Risk-seeking investors looking for listing gains and short-term upside can consider applying. Conservative investors may wait for post-listing performance to assess long-term potential.

The Upcoming IPOs in this week and coming weeks are Crizac, Silky Overseas, Vandan Foods, Pushpa Jewellers, Cedaar Textile, Marc Loire Fashions.

The Current active IPO are Neetu Yoshi, Adcounty Media India, Moving Media Entertainment, Valencia India, PRO FX Tech, Ace Alpha Tech, Indogulf Cropsciences, Suntech Infra Solutions, Rama Telecom, Supertech EV, Sambhav Steel Tubes, HDB Financials.

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